Regions Reports Earnings of $611 Million and EPS of $0.71 in 3Q 2026
Regions Reports Earnings of $611 Million and EPS of $0.71 in 3Q 2026 BIRMINGHAM, Ala. - (BUSINESS WIRE) - Oct. 16, 2026 - Regions Financial Corp. (NYSE:RF) today reported third quarter 2026 earnings of $611 million and diluted earnings per share (EPS) of $0.71. On an adjusted basis, earnings (1) were $622 million and diluted EPS (1) was $0.73. On both a reported and adjusted basis (1) , earnings increased 11 percent and diluted EPS increased 16 percent compared to the third quarter of 2025.
•Low… depo… base cont… to deli… peer… inte… depo… costs of 1.70% in 3Q26 •Est… CET1 of 10.8% supp… by stro… orga… capi… gene… •Ann… net char… decr… 13 bps QoQ to 29 bps; busi… serv… crit… loans and NPLs ($ also amoun… decr… in QoQ milli… while except ACL/… per incr… Fina… share Quart… to High… data) Ended 3Q26 2Q26 Sound… 275% ────────────────────────────────────────────────────────────────────────────── Earn… Summ… Net $ 631 $ 570 inco… Net inco… avai… 611 549 to comm… shar… Adj. net inco… avai… 622 583 to comm… shar… Dilu… earn… per 0.71 0.64 comm… share Adj. dilu… earn… 0.73 0.68 Profi… per comm… shar… •Best… hedgi… progr… creat… a mostly neutr… short… inter… rate posit… and suppo… a top-q… 3Q26 NIM of 3.68% •Prov… histo… of Bala… consi… Sheet gener… Summ… best-… retur… in our peer group; 3Q26 repor… ROATC… 21% and adjus… ROATC… 22% •Expe… remai… well contr… suppo… self-… of growth initi… Aver… loan… net $ 99,183 $ 98,7… of unea… inco… Aver… 129,1… 130,… depo… Cred… Qual… Allo… for cred… 1.61 % 1.63 % loss… ratio Net char… / 0.29 0.42 aver… loan… Sele… Rati… Retu… on 1.55 % 1.42 % Growth aver… asse… •Net income and dilut… EPS each grew 11% QoQ; Adj. net income and adj. dilut… EPS each grew 7%(1)… •3Q26 avera… loans incre… 0.5% while ending loans incre… Retu… 0.6% on QoQ; aver… 14.16 12.73 growth comm… driven equi… prima… by high-… broad… C&I loans •3Q26 repre… a record quart… in Capit… Marke… income (excl. custo… deriv… valua… adjus… •3Q26 repre… anoth… record quart… in Treas… Manag… income Retu… on avg. 21.27 19.01 tang… comm… equi… Adj. retu… on avg. 21.66 20.18 tang… comm… equi… Net inte… 3.68 3.66 marg… (FTE… Effi… 56.2 58.3 ratio Adju… effi… 55.8 56.9 rati… Comm… equi… Tier 10.8 10.7 1 rati… Effe… Tax 19.8 20.7 Rate *Ann… (1) Non-… refer to reco… in the fina… supp… to this earn… rele… incl… asEx… 99.2… the comp… Curr… Repo… on Form 8-K that was furn… to the Secu… and Exch… Comm… ("SE… on Oct. 16, 2026. (2) Curr… quar… is esti…
CEO Perspective: John Turner, Chairman, President and CEO of Regions Financial Corp. "At Regions Bank, we're seeing the benefits of the investments we're making in talent, technology and strategic growth. By remaining disciplined in our approach to risk management and staying committed to soundness, profitability, and growth, we are delivering strong results built on solid fundamentals and a competitive strategy. Strong credit quality, continued momentum in fee-based businesses, and economically vibrant markets throughout our footprint all contributed to our third quarter results. As we continue to modernize the franchise and expand our capabilities, Regions Bank is well positioned to meet the evolving needs of our customers and drive more sustainable growth over time."
** These market value adjustments relate to assets held for employee and director benefits that are effectively offset within salaries and employee benefits and other non-interest expense.
Total revenue increased 3 percent on a reported basis and 2 percent on an adjusted basis (1) compared to the second quarter of 2026. Net interest income increased 2 percent driven primarily by fixed-rate asset turnover, average loan growth, higher hedging income, credit interest recoveries, one additional day in the quarter and continued prudent management of deposit costs, partially offset by an increase in non-deposit funding costs. Net interest margin increased 2 basis points to 3.68 percent. 2 Non-interest income increased 7 percent on a reported basis and 3 percent on an adjusted basis (1) during the third quarter . With respect to adjusted items, the company incurred $15 million in securities losses in the third quarter compared to $40 million in the second quarter, attributable to the execution of additional securities repositioning trades. Record capital markets income increased 27 percent driven by higher mergers and acquisitions advisory revenue, securities underwriting and placement fees, commercial swap income and syndication revenue. Service charges increased 2 percent reflecting record Treasury Management income, one additional business day in the quarter, and seasonally higher consumer-related activity. Commercial credit fee income increased 25 percent driven by higher standby letter of credit income and commercial unused fees. Bank-owned life insurance increased 33 percent due to higher death benefit proceeds recognized during the quarter. Wealth management income decreased 3 percent following a record second quarter, primarily reflecting lower production volumes. Market value adjustments associated with employee benefit assets declined $28 million during the quarter and were largely offset by corresponding changes in non-interest expense.
* The company holds assets in order to effectively offset the market value adjustments on supplemental 401(k) liabilities and the market value adjustments on those assets are recorded in non-interest income.
Non-interest expenses remained relatively stable on both a reported and adjusted basis (1) compared to the second quarter 3 of 2026. Professional, legal, and regulatory expense increase driven primarily by higher legal settlement costs. Equipment and software expense increased 6 percent primarily reflecting software as a service charges associated with ongoing technology and infrastructure investments. Salaries and benefits were relatively stable as increases in base salaries and revenue-based incentives were largely offset by lower market value adjustments for supplemental employee benefit liabilities. The company's efficiency ratio was 56.2 percent on a reported basis and 55.8 percent on an adjusted basis (1) for the third quarter.
Average and ending loans increased modestly compared to the prior quarter. Average business loans increased 1 percent during the quarter while average consumer loans decreased slightly. Growth was driven by broad-based C&I lending categories including government and public sector, wholesale and financial services. Investor real estate delivered another solid quarter of growth, driven by strong production and increased bridge-financing activity within the multifamily sector, 4 as elevated long-term interest rates have slowed permanent financing. Loan growth remained high quality, with investment grade credits representing more than half of new balances.
*Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, selected deposits and brokered time deposits) and additional wholesale funding arrangements.
The company's deposit base has continued to be a source of strength and an industry differentiator in liquidity and margin performance. Average and ending deposits declined modestly during the quarter.
The decline in corporate deposits was driven primarily by a limited number of large commercial clients that strategically reallocated interest-bearing balances to off-balance sheet products through the bank's institutional investment services group. Importantly, underlying deposit trends remained healthy during the quarter, supported by continued growth in new accounts and increases in both average and ending non-interest bearing balances. In addition, the company continued to manage substantial excess client balances for commercial clients totaling approximately $16 billion through highly-liquid off- balance sheet investment solutions. 5 Asset quality
As of and for the ($ amounts in Quarter Ended millions) 9/30/2026 6/30/2026 9/30/2025 ────────────────────────────────────────────────────────────────────────────── Allowance for credit losses (ACL) at $1,609 $1,613 $1,713 period end ACL/Loans, net 1.61% 1.63% 1.78% Business criticized loans to total 4.71% 5.01% 5.81% business loans Allowance for credit losses to non-performing loans, 275% 241% 226% excluding loans held for sale Provision for credit $68 $68 $105 losses Net loans charged-off $72 $102 $135 Net loans charged-off as a % of average 0.29% 0.42% 0.55% loans, annualized Non-performing loans, excluding loans 0.59% 0.67% 0.79% held for sale/Loans, net NPAs (ex. 90+ past due)/Loans, foreclosed properties, 0.62% 0.69% 0.82% and non-performing loans held for sale NPAs (inc. 90+ past due)/Loans, foreclosed properties, 0.78% 0.85% 0.98% and non-performing loans held for sale* Total Criticized Loans—Business $3,203 $3,370 $3,682 Services**
* Excludes fully guaranteed residential first mortgages that are 90+ days past due and still accruing.
** Business services represents the combined total of commercial and investor real estate loans.
Asset quality trends improved during the quarter, reflecting the strength and resiliency of the company's customer base and continued disciplined risk management practices. Feedback from commercial customers and ongoing engagement by relationship managers indicates business sentiment remains constructive, while consumer credit fundamentals remain healthy. Consumer spending patterns across Regions' customer base were generally consistent with recent trends, and employment conditions remain supportive. While these trends remain favorable, the company continues to closely monitor economic uncertainty and portfolios with heightened risk or interest rate sensitivity.
Net charge-offs were $72 million or an annualized 29 basis points of average loans, representing a 13 basis point decrease compared to the second quarter of 2026. Business services criticized and total non-performing loans both declined during the quarter. The ratio of non-performing loans as a percentage of total loans declined 8 basis points to 0.59 percent, and the ratio of business services criticized loans as a percentage of total business loans declined 30 basis points to 4.71 percent.
Changes in portfolio composition, including growth in higher-quality loans and runoff in certain higher-risk portfolios, drove a modest reduction in the allowance during the quarter. That impact was partially offset by the recent increases in interest rates and ongoing macroeconomic uncertainty. As a result, the allowance for credit losses remained relatively stable, the allowance ratio decreased 2 basis points to 1.61 percent, and coverage of non-performing loans increased to 275 percent. 6 Capital and liquidity
Regions maintained a strong capital position in the third quarter with estimated capital ratios remaining well above current regulatory requirements. At quarter- end, the Common Equity Tier 1 (CET1) (2) and Tier 1 capital (2) ratios were estimated at 10.8 percent and 11.9 percent respectively.
During the third quarter, the company repurchased approximately 3 million shares of common stock for a total of $95 million through open-market purchases and declared $255 million in dividends to common shareholders.
The company's liquidity position also remained robust with total available liquidity as of Sept. 30, 2026, of approximately $64 billion, which includes cash held at the Federal Reserve, FHLB borrowing capacity, unencumbered securities, and capacity at the Federal Reserve's facilities such as the Discount Window or Standing Repo Operations. These sources are sufficient to cover uninsured deposits at a ratio of approximately 170 percent as of quarter- end (excluding intercompany and secured deposits).
(1) Non-GAAP; refer to reconciliations on pages 13 17 , 18 , 19 and 20 of the financial supplement to this earnings release included as Exhibit 99.2 to the company's Current Report on Form 8-K that was furnished to the SEC on Oct. 16, 2026.
(2) Current quarter Common Equity Tier 1 and Tier 1 capital ratios are estimated.
The company will hold a live audio webcast to discuss third quarter 2026 results on Oct. 16, 2026 at 10 a.m. ET. To access this live audio webcast, visit the Investor Relations page at ir.regions.com. An archived recording of the webcast will be available at the Investor Relations page at ir.regions.com following the live event.
Regions Financial Corporation (NYSE:RF), with $163 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates more than 1,200 banking offices and more than 1,750 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com. 7
This release and the accompanying earnings call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. In addition, the company, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,” “could,” “should,” “can,” and similar terms, expressions, and graphics often signify forward-looking statements. Forward-looking statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future, they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. Therefore, we caution you against relying on any of these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, those described below:
• Our businesses have been, and may continue to be, adversely affected by conditions in the financial markets and economic conditions generally.
• Fluctuations in market interest rates, including the level and shape of the yield curve, may adversely affect our performance.
• If we experience greater credit losses in our loan portfolios than anticipated, our earnings may be materially adversely affected.
• Any future reductions in our credit ratings may increase our funding costs and place limitations on business activities.
• Changes in the soundness of other financial institutions could adversely affect us.
• We may suffer losses if the value of collateral declines in stressed market conditions.
• Ineffective liquidity management could adversely affect our financial results and condition.
• We are at risk of a variety of systems failures or errors and cyber-attacks or other similar incidents that could adversely affect customer experience and our business and financial performance.
• We are subject to complex and evolving laws, regulations, rules, standards and contractual obligations regarding privacy and cybersecurity, which could increase the cost of doing business, compliance risks and potential liability.
• We will continually encounter technological change and must effectively anticipate, develop and implement new technology.
• The development and use of AI presents risks and challenges that may adversely impact our business.
• Industry competition, including competition from decentralized finance platforms, cryptocurrencies and blockchain technologies could disrupt our business model and adversely affect our revenues, market share or liquidity.
• Our operations are concentrated primarily in the South, Midwest and Texas, and adverse changes in the economic conditions in this region can adversely affect our financial results and condition.
• Weakness in the residential real estate markets could adversely affect our performance.
• Weakness in the commercial real estate markets could adversely affect our performance.
• Risks associated with home equity products where we are in a second lien position could adversely affect our performance.
• An outbreak or escalation of hostilities between countries or within a country or region could have a material adverse effect on the U.S. economy and on our businesses.
• We are subject to a variety of operational risks, including the risk of fraud or theft by internal or external parties, which may adversely affect our business and results of operations.
• We rely on other companies to provide key components of our business infrastructure.
• We depend on the accuracy and completeness of information about clients and counterparties.
• We are exposed to risk of environmental liability when we take title to property.
• We can be negatively affected if we fail to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms.
• Enhanced regulatory and other standards for the oversight of vendors and other service providers can result in higher costs and other potential exposures.
• We are, and may in the future be, subject to claims and litigation calling into question our right to use the intellectual property underlying certain technology in our business.
• Weather-related events, pandemics and other natural or man-made disasters could cause a disruption in our operations or lead to other consequences that could adversely impact our financial results and condition. These impacts could be intensified by climate change. Heightening focus on climate change may also carry transition risks that could negatively impact our results of operations and financial condition.
• We are subject to sociopolitical risks that could adversely affect our business, reputation and the trading price of our common stock.
• We are, and may in the future be, subject to litigation, investigations and governmental proceedings that may result in liabilities adversely affecting our financial condition, business or results of operations or in reputational harm.
• We are subject to extensive governmental regulation, which could have an adverse impact on our operations and our business model.
• We are subject to a variety of risks in connection with any sale of loans we may conduct.
• Rulemaking changes and regulatory initiatives implemented by the CFPB may result in higher regulatory and compliance costs that may adversely affect our results of operations.
• We are subject to numerous laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws, and a failure to comply with these laws could lead to a wide variety of penalties and other sanctions.
• We may not be able to complete future acquisitions, may not be successful in realizing the benefits of any future acquisitions that are completed or may choose not to pursue acquisition opportunities we might find beneficial.
• Unfavorable results from ongoing stress analyses may adversely affect our ability to retain customers or compete for new business opportunities.
• We are a holding company and depend on our subsidiaries for dividends, distributions and other payments.
• Anti-takeover and banking laws and certain agreements and charter provisions may adversely affect share value.
• Our amended and restated by-laws designate (i) the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareholders and (ii) the federal district courts of the United States as the sole and exclusive forum for any 8 action asserting a cause of action arising under the Securities Act, which could limit our shareholders’ ability to obtain a favorable judicial forum for disputes with our company or our company’s directors, officers or other employees.
• We face substantial legal and operational risks in our safeguarding and other processing of personal information.
• Our businesses may be adversely affected if we are unable to hire and retain qualified employees.
• Our operations rely on our ability, and the ability of key external parties, to maintain appropriately staffed workforces, and on the competence, trustworthiness, health and safety of employees.
• Our reported financial results depend on management’s selection of accounting methods and certain assumptions and estimates.
• If the models that we use in our business perform poorly or provide inadequate information, our business or results of operations may be adversely affected.
• Changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition. The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Cautionary Note Regarding Forward-Looking Statements and Risk Factor Summary” and “Risk Factors” in Regions’ Annual Report on Form 10-K for the year ended Dec. 31, 2025 and in Regions’ subsequent filings with the SEC.
You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible to predict all of them. We assume no obligation and do not intend to update or revise any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law.
Regions’ Investor Relations contact Chris Best (205) 264-7040; Regions’ Media contact is Jeremy King at (205) 264-4551.
Management uses pre-tax pre-provision income (non-GAAP), adjusted pre-tax pre- provision income (non-GAAP), the adjusted efficiency ratio (non-GAAP), the adjusted fee income ratio (non-GAAP), return on average tangible common shareholders' equity (non-GAAP), adjusted return on average tangible common shareholders' equity (non-GAAP), as well as adjusted net income available to common shareholders (non-GAAP) and adjusted diluted EPS (non-GAAP) to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the adjusted efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the adjusted fee income ratio. Adjusted non-interest income (non-GAAP) and adjusted non-interest expense (non- GAAP) are used to determine adjusted pre-tax pre-provision income (non-GAAP). Net interest income (GAAP) on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the adjusted fee income and adjusted efficiency ratios. Net income available to common shareholders (GAAP) is presented excluding certain adjustments, net of tax, to arrive at adjusted net income available to common shareholders (non-GAAP), which is the numerator for adjusted diluted EPS (non-GAAP). Return on average tangible common shareholders' equity (non-GAAP) is calculated by dividing net income available to common shareholders (GAAP) by the average tangible common shareholders’ equity (non-GAAP). Net income available to common shareholders (GAAP) is presented excluding certain adjustments, net of tax, to arrive at adjusted net income available to common shareholders (non-GAAP), which is the numerator for adjusted return on average tangible common shareholders’ equity. Adjusted return on average tangible common shareholders' equity is calculated by dividing the adjusted net income available to common shareholders (non-GAAP) by the average tangible common shareholders’ equity (non-GAAP).
Regions believes that the exclusion of these adjustments provides a meaningful basis for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the company on the same basis as that applied by management. Tangible common book value per share is calculated by dividing tangible common shareholders' equity (non-GAAP) by tangible assets (non-GAAP). The numerator for tangible book value per share (non-GAAP), tangible common shareholders' equity (non-GAAP), is calculated by excluding intangible assets and the deferred tax liability related to intangible assets from common shareholders' equity (GAAP). The denominator for tangible book value per share (non-GAAP), tangible assets (non-GAAP), is calculated by excluding intangible assets and the deferred tax liability related to intangible assets from total assets (non-GAAP).
Tangible common shareholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the company absent the effects of intangible assets and preferred stock. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common shareholders’ equity measure. Because tangible common shareholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders’ equity to tangible assets, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to stockholders. Additionally, our non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies and there is no certainty that we will not incur expenses in the future that are similar to those excluded in the calculations of non-GAAP financial measures presented herein.
See the company's Financial Supplement, included as Exhibit 99.2 to the company's Current Report on Form 8-K furnished to the SEC on Oct. 16, 2026, for reconciliations of and additional information regarding the company's non-GAAP financial measures. 9
Full text with the tables
Exhibit 99.1
Regions Reports Earnings of $611 Million and EPS of $0.71 in 3Q 2026
BIRMINGHAM, Ala. - (BUSINESS WIRE) - Oct. 16, 2026 - Regions Financial Corp.
(NYSE:RF) today reported third quarter 2026 earnings of $611 million and diluted
earnings per share (EPS) of $0.71. On an adjusted basis, earnings (1) were $622
million and diluted EPS (1) was $0.73. On both a reported and adjusted basis (1)
, earnings increased 11 percent and diluted EPS increased 16 percent compared to
the third quarter of 2025.
•Low…
depo…
base
cont…
to
deli…
peer…
inte…
depo…
costs
of
1.70%
in
3Q26
•Est…
CET1
of
10.8%
supp…
by
stro…
orga…
capi…
gene…
•Ann…
net
char…
decr…
13
bps
QoQ
to 29
bps;
busi…
serv…
crit…
loans
and
NPLs
($ also
amoun… decr…
in QoQ
milli… while
except ACL/…
per incr…
Fina… share Quart… to
High… data) Ended 3Q26 2Q26 Sound… 275%
──────────────────────────────────────────────────────────────────────────────
Earn…
Summ…
Net $ 631 $ 570
inco…
Net
inco…
avai… 611 549
to
comm…
shar…
Adj.
net
inco…
avai… 622 583
to
comm…
shar…
Dilu…
earn…
per 0.71 0.64
comm…
share
Adj.
dilu…
earn… 0.73 0.68 Profi…
per
comm…
shar…
•Best…
hedgi…
progr…
creat…
a
mostly
neutr…
short…
inter…
rate
posit…
and
suppo…
a
top-q…
3Q26
NIM of
3.68%
•Prov…
histo…
of
Bala… consi…
Sheet gener…
Summ… best-…
retur…
in our
peer
group;
3Q26
repor…
ROATC…
21%
and
adjus…
ROATC…
22%
•Expe…
remai…
well
contr…
suppo…
self-…
of
growth
initi…
Aver…
loan…
net $ 99,183 $ 98,7…
of
unea…
inco…
Aver… 129,1… 130,…
depo…
Cred…
Qual…
Allo…
for
cred… 1.61 % 1.63 %
loss…
ratio
Net
char…
/ 0.29 0.42
aver…
loan…
Sele…
Rati…
Retu…
on 1.55 % 1.42 % Growth
aver…
asse…
•Net
income
and
dilut…
EPS
each
grew
11%
QoQ;
Adj.
net
income
and
adj.
dilut…
EPS
each
grew
7%(1)…
•3Q26
avera…
loans
incre…
0.5%
while
ending
loans
incre…
Retu… 0.6%
on QoQ;
aver… 14.16 12.73 growth
comm… driven
equi… prima…
by
high-…
broad…
C&I
loans
•3Q26
repre…
a
record
quart…
in
Capit…
Marke…
income
(excl.
custo…
deriv…
valua…
adjus…
•3Q26
repre…
anoth…
record
quart…
in
Treas…
Manag…
income
Retu…
on
avg. 21.27 19.01
tang…
comm…
equi…
Adj.
retu…
on
avg. 21.66 20.18
tang…
comm…
equi…
Net
inte… 3.68 3.66
marg…
(FTE…
Effi… 56.2 58.3
ratio
Adju…
effi… 55.8 56.9
rati…
Comm…
equi…
Tier 10.8 10.7
1
rati…
Effe…
Tax 19.8 20.7
Rate
*Ann…
(1)
Non-…
refer
to
reco…
in
the
fina…
supp…
to
this
earn…
rele…
incl…
asEx…
99.2…
the
comp…
Curr…
Repo…
on
Form
8-K
that
was
furn…
to
the
Secu…
and
Exch…
Comm…
("SE…
on
Oct.
16,
2026.
(2)
Curr…
quar…
is
esti…
CEO Perspective:
John Turner, Chairman, President and CEO of
Regions Financial Corp.
"At Regions Bank, we're seeing the benefits of the
investments we're making in talent, technology and
strategic growth. By remaining disciplined in our
approach to risk management and staying committed
to soundness, profitability, and growth, we are
delivering strong results built on solid
fundamentals and a competitive strategy. Strong
credit quality, continued momentum in fee-based
businesses, and economically vibrant markets
throughout our footprint all contributed to our
third quarter results. As we continue to modernize
the franchise and expand our capabilities, Regions
Bank is well positioned to meet the evolving needs
of our customers and drive more sustainable growth
over time."
1
Total revenue
($
a… 3… 3…
in Q… v… v…
m… E… 9… 6… 9… 2… 3…
──────────────────────────────────────────────────────────────────────────────
…
… $ 1… $ 1… $ 1… $ 21 1… % $ 41 3… %
…
…
… 16 14 12 2 1… % 4 3… %
…
…
…
… $ 1… $ 1… $ 1… $ 23 1… % $ 45 3… %
…
…
…
…
… 3… % 3… % 3… %
…
…
…
…
…
…
… $ 1… $ 1… $ 1… $ 4 2… % $ 11 6… %
…
…
…
… 1… 1… 1… — — % 4 3… %
…
…
…
… 1… 1… 1… -4 -… % 7 5… %
…
…
… 1… 84 1… 23 2… % 3 2… %
…
… 32 33 38 -1 -… % -6 -… %
…
…
… 35 28 28 7 2… % 7 2… %
…
…
… 32 24 25 8 3… % 7 2… %
…
…
…
…
… -4 24 12 -… -… % -… -… %
…
…
…
…
… -… -… -… 26 6… % 12 4… %
…
…
…
… 45 35 58 10 2… % -… -… %
…
… $ 6… $ 6… $ 6… $ 45 7… % $ 16 2… %
…
…
… $ 6… $ 6… $ 6… $ 20 3… % $ 6 0… %
…
…
… $ 1… $ 1… $ 1… $ 66 3… % $ 57 3… %
…
…
… $ 1… $ 1… $ 1… $ 41 2… % $ 47 2… %
…
…
NM - Not Meaningful
* Annualized
** These market value adjustments relate to assets held for employee and
director benefits that are effectively offset within salaries and employee
benefits and other non-interest expense.
Total revenue increased 3 percent on a reported basis and 2 percent on an
adjusted basis (1) compared to the second quarter of 2026. Net interest income
increased 2 percent driven primarily by fixed-rate asset turnover, average loan
growth, higher hedging income, credit interest recoveries, one additional day in
the quarter and continued prudent management of deposit costs, partially offset
by an increase in non-deposit funding costs. Net interest margin increased 2
basis points to 3.68 percent.
2
Non-interest income increased 7 percent on a reported basis and 3 percent on an
adjusted basis (1) during the third quarter . With respect to adjusted items,
the company incurred $15 million in securities losses in the third quarter
compared to $40 million in the second quarter, attributable to the execution of
additional securities repositioning trades. Record capital markets income
increased 27 percent driven by higher mergers and acquisitions advisory revenue,
securities underwriting and placement fees, commercial swap income and
syndication revenue. Service charges increased 2 percent reflecting record
Treasury Management income, one additional business day in the quarter, and
seasonally higher consumer-related activity. Commercial credit fee income
increased 25 percent driven by higher standby letter of credit income and
commercial unused fees. Bank-owned life insurance increased 33 percent due to
higher death benefit proceeds recognized during the quarter. Wealth management
income decreased 3 percent following a record second quarter, primarily
reflecting lower production volumes. Market value adjustments associated with
employee benefit assets declined $28 million during the quarter and were largely
offset by corresponding changes in non-interest expense.
Non-interest expense
($
am… 3Q… 3Q…
in Qu… vs. vs.
mi… En… 9/… 6/… 9/… 2Q… 3Q…
──────────────────────────────────────────────────────────────────────────────
S…
a… $ 694 $ 697 $ 671 $ -3 -0… % $ 23 3… %
e…
b…
E…
a… 113 107 106 6 5.6 % 7 6… %
s…
e…
N…
o… 74 73 72 1 1.4 % 2 2… %
e…
O… 45 47 42 -2 -4… % 3 7… %
s…
M… 29 28 28 1 3.6 % 1 3… %
P…
l…
a… 35 28 30 7 25… % 5 1… %
r…
e…
C… 18 16 15 2 12… % 3 2… %
e…
F…
i… 16 17 15 -1 -5… % 1 6… %
a…
V…
c…
B 4 2 8 2 10… % -4 -… %
s…
e…
O… 7 8 18 -1 -1… % -11 -… %
l…
B…
c…
p… — 5 -5 -5 -1… % 5 1… %
a…
e…
c…
O…
m… 83 93 103 -10 -1… % -20 -… %
e…
N… $ 1,… $ 1,… $ 1,… $ -3 -0… % $ 15 1… %
e…
A…
n… $ 1,… $ 1,… $ 1,… $ 2 0.2 % $ 7 0… %
e…
(…
Salaries and Employee Benefits Expense
($
am… 3Q… 3…
in Qu… vs. v…
mi… En… 9/… 6/… 9/… 2Q… 3…
──────────────────────────────────────────────────────────────────────────────
S…
a… $ 694 $ 697 $ 671 $ -3 -0… % $ 23 3.4 %
e…
b…
L…
M…
v…
a… -2 24 13 -26 -1… % -… -1… %
on
s…
4…
l…
S…
a…
e…
b…
l…
m… $ 696 $ 673 $ 658 $ 23 3.4 % $ 38 5.8 %
v…
a…
on
e…
b…
l…
NM - Not Meaningful
* The company holds assets in order to effectively offset the market value
adjustments on supplemental 401(k) liabilities and the market value adjustments
on those assets are recorded in non-interest income.
Non-interest expenses remained relatively stable on both a reported and adjusted
basis (1) compared to the second quarter
3
of 2026. Professional, legal, and regulatory expense increase driven primarily
by higher legal settlement costs. Equipment and software expense increased 6
percent primarily reflecting software as a service charges associated with
ongoing technology and infrastructure investments. Salaries and benefits were
relatively stable as increases in base salaries and revenue-based incentives
were largely offset by lower market value adjustments for supplemental employee
benefit liabilities. The company's efficiency ratio was 56.2 percent on a
reported basis and 55.8 percent on an adjusted basis (1) for the third quarter.
Loans
($
am…
in
mi…
net
of 3Q26 3Q26
un… Av… vs. vs.
in… Ba… 3Q… 2Q… 3Q… 2Q26 3Q25
──────────────────────────────────────────────────────────────────────────────
C…
a… $ 51… $ 51… $ 49… $ 406 0.8 % $ 2,3… 4.…
i…
C…
r… 5,… 5,… 5,… 18 0.3 % 226 4.…
e…
I…
r… 9,… 9,… 9,… 203 2.1 % 854 9.…
e…
B… 67… 66… 63… 627 0.9 % 3,4… 5.…
L…
R…
f… 19… 19… 19… -128 -0… % -521 (2…
m…
H… 5,… 5,… 5,… 15 0.3 % -27 (0…
e…
C…
c… 1,… 1,… 1,… 18 1.2 % 72 5.…
c…
O… 5,… 5,… 5,… -71 -1… % -390 (6…
c…
C… 31… 32… 32… -166 -0… % -866 (2…
L…
T… $ 99… $ 98… $ 96… $ 461 0.5 % $ 2,5… 2.…
L…
($
a…
in
m…
n…
of En… 9… 9/…
u… Ba… v… vs.
i… 9/… 6/… 9/… 6… 9/…
──────────────────────────────────────────────────────────────────────────────
C…
a… $ 52… $ 51… $ 49… $ 568 1… % $ 3… 6.…
i…
C…
r… 5,… 5,… 5,… -26 -… % 2… 4.…
e…
I…
r… 10… 9,… 9,… 242 2… % 1… 12…
e…
B… 67… 67… 63… 784 1… % 4… 7.…
L…
R…
f… 19… 19… 19… -1… -… % -… (2…
m…
H… 5,… 5,… 5,… 33 0… % -… (0…
e…
C…
c… 1,… 1,… 1,… 14 0… % 75 5.…
c…
O… 5,… 5,… 5,… -82 -… % -… (7…
c…
C… 31… 31… 32… -1… -… % -… (2…
L…
T… $ 99… $ 99… $ 96… $ 627 0… % $ 3… 3.…
L…
NM - Not meaningful.
* Other consumer loans includes Regions' Home Improvement Financing portfolio.
Average and ending loans increased modestly compared to the prior quarter.
Average business loans increased 1 percent during the quarter while average
consumer loans decreased slightly. Growth was driven by broad-based C&I lending
categories including government and public sector, wholesale and financial
services. Investor real estate delivered another solid quarter of growth, driven
by strong production and increased bridge-financing activity within the
multifamily sector,
4
as elevated long-term interest rates have slowed permanent financing. Loan
growth remained high quality, with investment grade credits representing more
than half of new balances.
Deposits
($
am… 3Q… 3…
in Av… vs. v…
mi… Ba… 3Q… 2Q… 3Q… 2Q… 3…
──────────────────────────────────────────────────────────────────────────────
T…
i… $ 89… $ 90… $ 90… $ -1… (… $ -… (0…
d…
N… 39… 39… 39… 38 0… 2… 0.…
d…
T… $ 12… $ 13… $ 12… $ -1… (… $ -… (0…
D…
($ 3… 3Q…
a… 3Q… 2Q… 3Q… v… vs.
in 2… 3Q…
m…
C…
B… $ 80… $ 80… $ 79… $ -5… (… $ 4… 0.…
S…
C…
B… 39… 40… 39… -6… (… -… (0…
S…
W…
M… 7,… 7,… 7,… -1… (… 2… 3.…
S…
O… 2,… 2,… 2,… -3… (… -… (2…
T… $ 12… $ 13… $ 12… $ -1… (… $ -… (0…
D…
End
($ of
a… Pe… 9/… 9/…
in De… vs. vs.
m… 9/… 6/… 9/… 6/… 9/…
──────────────────────────────────────────────────────────────────────────────
C…
B… $ 80… $ 80… $ 79… $ 3 —% $ 1,… 1.…
S…
C…
B… 39… 39… 40… -6… (1… -1… (2…
S…
W…
M… 7,… 7,… 7,… -29 (0… -2… (2…
S…
O… 1,… 2,… 2,… -4… (2… -7… (2…
T… $ 12… $ 13… $ 13… $ -1… (0… $ -8… (0…
D…
NM - Not meaningful.
*Other deposits represent non-customer balances primarily consisting of
wholesale funding (for example, selected deposits and brokered time deposits)
and additional wholesale funding arrangements.
The company's deposit base has continued to be a source of strength and an
industry differentiator in liquidity and margin performance. Average and ending
deposits declined modestly during the quarter.
The decline in corporate deposits was driven primarily by a limited number of
large commercial clients that strategically reallocated interest-bearing
balances to off-balance sheet products through the bank's institutional
investment services group. Importantly, underlying deposit trends remained
healthy during the quarter, supported by continued growth in new accounts and
increases in both average and ending non-interest bearing balances. In addition,
the company continued to manage substantial excess client balances for
commercial clients totaling approximately $16 billion through highly-liquid off-
balance sheet investment solutions.
5
Asset quality
As of and for the
($ amounts in Quarter Ended
millions) 9/30/2026 6/30/2026 9/30/2025
──────────────────────────────────────────────────────────────────────────────
Allowance for credit
losses (ACL) at $1,609 $1,613 $1,713
period end
ACL/Loans, net 1.61% 1.63% 1.78%
Business criticized
loans to total 4.71% 5.01% 5.81%
business loans
Allowance for credit
losses to
non-performing loans, 275% 241% 226%
excluding loans
held for sale
Provision for credit $68 $68 $105
losses
Net loans charged-off $72 $102 $135
Net loans charged-off
as a % of average 0.29% 0.42% 0.55%
loans, annualized
Non-performing loans,
excluding loans 0.59% 0.67% 0.79%
held for sale/Loans,
net
NPAs (ex. 90+ past
due)/Loans,
foreclosed properties, 0.62% 0.69% 0.82%
and
non-performing loans
held for sale
NPAs (inc. 90+ past
due)/Loans,
foreclosed properties, 0.78% 0.85% 0.98%
and
non-performing loans
held for sale*
Total Criticized
Loans—Business $3,203 $3,370 $3,682
Services**
* Excludes fully guaranteed residential first mortgages that are 90+ days past
due and still accruing.
** Business services represents the combined total of commercial and investor
real estate loans.
Asset quality trends improved during the quarter, reflecting the strength and
resiliency of the company's customer base and continued disciplined risk
management practices. Feedback from commercial customers and ongoing engagement
by relationship managers indicates business sentiment remains constructive,
while consumer credit fundamentals remain healthy. Consumer spending patterns
across Regions' customer base were generally consistent with recent trends, and
employment conditions remain supportive. While these trends remain favorable,
the company continues to closely monitor economic uncertainty and portfolios
with heightened risk or interest rate sensitivity.
Net charge-offs were $72 million or an annualized 29 basis points of average
loans, representing a 13 basis point decrease compared to the second quarter of
2026. Business services criticized and total non-performing loans both declined
during the quarter. The ratio of non-performing loans as a percentage of total
loans declined 8 basis points to 0.59 percent, and the ratio of business
services criticized loans as a percentage of total business loans declined 30
basis points to 4.71 percent.
Changes in portfolio composition, including growth in higher-quality loans and
runoff in certain higher-risk portfolios, drove a modest reduction in the
allowance during the quarter. That impact was partially offset by the recent
increases in interest rates and ongoing macroeconomic uncertainty. As a result,
the allowance for credit losses remained relatively stable, the allowance ratio
decreased 2 basis points to 1.61 percent, and coverage of non-performing loans
increased to 275 percent.
6
Capital and liquidity
As of and for Quarter
Ended
9/30/2026 6/30/2026 9/30/2025
──────────────────────────────────────────────────────────────────────────────
Common Equity Tier 1 10.8% 10.7% 10.9%
ratio(2)
Tier 1 capital 11.9% 11.8% 12.0%
ratio(2)
Total shareholders'
equity to total 10.93% 11.68% 11.91%
assets
Tangible common
shareholders’ equity
to 6.83% 7.55% 7.74%
tangible assets
(non-GAAP)(1)
Common book value per $19.38 $20.48 $19.98
share
Tangible common book
value per share $12.65 $13.78 $13.49
(non-GAAP)(1)
Loans, net of unearned
income, to total 77.1% 75.9% 73.8%
deposits
Regions maintained a strong capital position in the third quarter with estimated
capital ratios remaining well above current regulatory requirements. At quarter-
end, the Common Equity Tier 1 (CET1) (2) and Tier 1 capital (2) ratios were
estimated at 10.8 percent and 11.9 percent respectively.
During the third quarter, the company repurchased approximately 3 million shares
of common stock for a total of $95 million through open-market purchases and
declared $255 million in dividends to common shareholders.
The company's liquidity position also remained robust with total available
liquidity as of Sept. 30, 2026, of approximately $64 billion, which includes
cash held at the Federal Reserve, FHLB borrowing capacity, unencumbered
securities, and capacity at the Federal Reserve's facilities such as the
Discount Window or Standing Repo Operations. These sources are sufficient to
cover uninsured deposits at a ratio of approximately 170 percent as of quarter-
end (excluding intercompany and secured deposits).
(1) Non-GAAP; refer to reconciliations on pages 13 17 , 18 , 19 and 20 of the
financial supplement to this earnings release included as Exhibit 99.2 to the
company's Current Report on Form 8-K that was furnished to the SEC on Oct. 16,
2026.
(2) Current quarter Common Equity Tier 1 and Tier 1 capital ratios are
estimated.
Conference Call
The company will hold a live audio webcast to discuss third quarter 2026 results
on Oct. 16, 2026 at 10 a.m. ET. To access this live audio webcast, visit the
Investor Relations page at ir.regions.com. An archived recording of the webcast
will be available at the Investor Relations page at ir.regions.com following the
live event.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $163 billion in assets, is a
member of the S&P 500 Index and is one of the nation’s largest full-service
providers of consumer and commercial banking, wealth management, and mortgage
products and services. Regions serves customers across the South, Midwest and
Texas, and through its subsidiary, Regions Bank, operates more than 1,200
banking offices and more than 1,750 ATMs. Regions Bank is an Equal Housing
Lender and Member FDIC. Additional information about Regions and its full line
of products and services can be found at www.regions.com.
7
Forward-Looking Statements
This release and the accompanying earnings call may include forward-looking
statements as defined in the Private Securities Litigation Reform Act of 1995.
In addition, the company, through its senior management, may from time to time
make forward-looking public statements concerning the matters described herein.
The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,”
“believes,” “predicts,” “potential,” “objectives,” “estimates,” “expects,”
“targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,”
“could,” “should,” “can,” and similar terms, expressions, and graphics often
signify forward-looking statements. Forward-looking statements are subject to
the risk that the actual effects may differ, possibly materially, from what is
reflected in those forward-looking statements due to factors and future
developments that are uncertain, unpredictable and in many cases beyond our
control. Forward-looking statements are not based on historical information, but
rather are related to future operations, strategies, financial results or other
developments. Forward-looking statements are based on management’s current
expectations as well as certain assumptions and estimates made by, and
information available to, management at the time the statements are made. Those
statements are based on general assumptions and are subject to various risks,
and because they also relate to the future, they are likewise subject to
inherent uncertainties and other factors that may cause actual results to differ
materially from the views, beliefs and projections expressed in such statements.
Therefore, we caution you against relying on any of these forward-looking
statements. These risks, uncertainties and other factors include, but are not
limited to, those described below:
• Our businesses have been, and may continue to be, adversely affected by
conditions in the financial markets and economic conditions generally.
• Fluctuations in market interest rates, including the level and shape of the
yield curve, may adversely affect our performance.
• If we experience greater credit losses in our loan portfolios than
anticipated, our earnings may be materially adversely affected.
• Any future reductions in our credit ratings may increase our funding costs and
place limitations on business activities.
• Changes in the soundness of other financial institutions could adversely
affect us.
• We may suffer losses if the value of collateral declines in stressed market
conditions.
• Ineffective liquidity management could adversely affect our financial results
and condition.
• Loss of deposits or a change in deposit mix could increase our funding costs.
• We rely on the mortgage secondary market to manage various risks.
• We are at risk of a variety of systems failures or errors and cyber-attacks or
other similar incidents that could adversely affect customer experience and our
business and financial performance.
• We are subject to complex and evolving laws, regulations, rules, standards and
contractual obligations regarding privacy and cybersecurity, which could
increase the cost of doing business, compliance risks and potential liability.
• We will continually encounter technological change and must effectively
anticipate, develop and implement new technology.
• The development and use of AI presents risks and challenges that may adversely
impact our business.
• Industry competition, including competition from decentralized finance
platforms, cryptocurrencies and blockchain technologies could disrupt our
business model and adversely affect our revenues, market share or liquidity.
• Our operations are concentrated primarily in the South, Midwest and Texas, and
adverse changes in the economic conditions in this region can adversely affect
our financial results and condition.
• Weakness in the residential real estate markets could adversely affect our
performance.
• Weakness in the commercial real estate markets could adversely affect our
performance.
• Risks associated with home equity products where we are in a second lien
position could adversely affect our performance.
• Weakness in commodity businesses could adversely affect our performance.
• An outbreak or escalation of hostilities between countries or within a country
or region could have a material adverse effect on the U.S. economy and on our
businesses.
• We are subject to a variety of operational risks, including the risk of fraud
or theft by internal or external parties, which may adversely affect our
business and results of operations.
• We rely on other companies to provide key components of our business
infrastructure.
• We depend on the accuracy and completeness of information about clients and
counterparties.
• We are exposed to risk of environmental liability when we take title to
property.
• We can be negatively affected if we fail to identify and address operational
risks associated with the introduction of or changes to products, services and
delivery platforms.
• Enhanced regulatory and other standards for the oversight of vendors and other
service providers can result in higher costs and other potential exposures.
• We are, and may in the future be, subject to claims and litigation calling
into question our right to use the intellectual property underlying certain
technology in our business.
• Weather-related events, pandemics and other natural or man-made disasters
could cause a disruption in our operations or lead to other consequences that
could adversely impact our financial results and condition. These impacts could
be intensified by climate change. Heightening focus on climate change may also
carry transition risks that could negatively impact our results of operations
and financial condition.
• We are subject to sociopolitical risks that could adversely affect our
business, reputation and the trading price of our common stock.
• Damage to our reputation could significantly harm our businesses.
• We are, and may in the future be, subject to litigation, investigations and
governmental proceedings that may result in liabilities adversely affecting our
financial condition, business or results of operations or in reputational harm.
• We are subject to extensive governmental regulation, which could have an
adverse impact on our operations and our business model.
• We are subject to a variety of risks in connection with any sale of loans we
may conduct.
• We may be subject to more stringent capital and liquidity requirements.
• Rulemaking changes and regulatory initiatives implemented by the CFPB may
result in higher regulatory and compliance costs that may adversely affect our
results of operations.
• We are subject to numerous laws designed to protect consumers, including the
Community Reinvestment Act and fair lending laws, and a failure to comply with
these laws could lead to a wide variety of penalties and other sanctions.
• We may not be able to complete future acquisitions, may not be successful in
realizing the benefits of any future acquisitions that are completed or may
choose not to pursue acquisition opportunities we might find beneficial.
• Increases in FDIC insurance assessments may adversely affect our earnings.
• Unfavorable results from ongoing stress analyses may adversely affect our
ability to retain customers or compete for new business opportunities.
• We are a holding company and depend on our subsidiaries for dividends,
distributions and other payments.
• We may not pay dividends on shares of our capital stock.
• Anti-takeover and banking laws and certain agreements and charter provisions
may adversely affect share value.
• Our amended and restated by-laws designate (i) the Court of Chancery of the
State of Delaware as the sole and exclusive forum for certain types of actions
and proceedings that may be initiated by our shareholders and (ii) the federal
district courts of the United States as the sole and exclusive forum for any
8
action asserting a cause of action arising under the Securities Act, which could
limit our shareholders’ ability to obtain a favorable judicial forum for
disputes with our company or our company’s directors, officers or other
employees.
• We face substantial legal and operational risks in our safeguarding and other
processing of personal information.
• Differences in regulation can affect our ability to compete effectively.
• Our businesses may be adversely affected if we are unable to hire and retain
qualified employees.
• Our operations rely on our ability, and the ability of key external parties,
to maintain appropriately staffed workforces, and on the competence,
trustworthiness, health and safety of employees.
• Our reported financial results depend on management’s selection of accounting
methods and certain assumptions and estimates.
• If the models that we use in our business perform poorly or provide inadequate
information, our business or results of operations may be adversely affected.
• Changes in our accounting policies or in accounting standards could materially
affect how we report our financial results and condition.
The foregoing list of factors is not exhaustive. For discussion of these and
other factors that may cause actual results to differ from expectations, look
under the captions “Cautionary Note Regarding Forward-Looking Statements and
Risk Factor Summary” and “Risk Factors” in Regions’ Annual Report on Form 10-K
for the year ended Dec. 31, 2025 and in Regions’ subsequent filings with the
SEC.
You should not place undue reliance on any forward-looking statements, which
speak only as of the date made. Factors or events that could cause our actual
results to differ may emerge from time to time, and it is not possible to
predict all of them. We assume no obligation and do not intend to update or
revise any forward-looking statements that are made from time to time, either as
a result of future developments, new information or otherwise, except as may be
required by law.
Regions’ Investor Relations contact Chris Best (205) 264-7040; Regions’ Media
contact is Jeremy King at (205) 264-4551.
Use of Non-GAAP Financial Measures
Management uses pre-tax pre-provision income (non-GAAP), adjusted pre-tax pre-
provision income (non-GAAP), the adjusted efficiency ratio (non-GAAP), the
adjusted fee income ratio (non-GAAP), return on average tangible common
shareholders' equity (non-GAAP), adjusted return on average tangible common
shareholders' equity (non-GAAP), as well as adjusted net income available to
common shareholders (non-GAAP) and adjusted diluted EPS (non-GAAP) to monitor
performance and believes these measures provide meaningful information to
investors. Non-interest expense (GAAP) is presented excluding certain
adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the
numerator for the adjusted efficiency ratio. Non-interest income (GAAP) is
presented excluding certain adjustments to arrive at adjusted non-interest
income (non-GAAP), which is the numerator for the adjusted fee income ratio.
Adjusted non-interest income (non-GAAP) and adjusted non-interest expense (non-
GAAP) are used to determine adjusted pre-tax pre-provision income (non-GAAP).
Net interest income (GAAP) on a taxable-equivalent basis and non-interest income
are added together to arrive at total revenue on a taxable-equivalent basis.
Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent
basis (non-GAAP), which is the denominator for the adjusted fee income and
adjusted efficiency ratios. Net income available to common shareholders (GAAP)
is presented excluding certain adjustments, net of tax, to arrive at adjusted
net income available to common shareholders (non-GAAP), which is the numerator
for adjusted diluted EPS (non-GAAP). Return on average tangible common
shareholders' equity (non-GAAP) is calculated by dividing net income available
to common shareholders (GAAP) by the average tangible common shareholders’
equity (non-GAAP). Net income available to common shareholders (GAAP) is
presented excluding certain adjustments, net of tax, to arrive at adjusted net
income available to common shareholders (non-GAAP), which is the numerator for
adjusted return on average tangible common shareholders’ equity. Adjusted return
on average tangible common shareholders' equity is calculated by dividing the
adjusted net income available to common shareholders (non-GAAP) by the average
tangible common shareholders’ equity (non-GAAP).
Regions believes that the exclusion of these adjustments provides a meaningful
basis for period-to-period comparisons, which management believes will assist
investors in analyzing the operating results of the company and predicting
future performance. These non-GAAP financial measures are also used by
management to assess the performance of Regions’ business. It is possible that
the activities related to the adjustments may recur; however, management does
not consider the activities related to the adjustments to be indications of
ongoing operations. Regions believes that presentation of these non-GAAP
financial measures will permit investors to assess the performance of the
company on the same basis as that applied by management. Tangible common book
value per share is calculated by dividing tangible common shareholders' equity
(non-GAAP) by tangible assets (non-GAAP). The numerator for tangible book value
per share (non-GAAP), tangible common shareholders' equity (non-GAAP), is
calculated by excluding intangible assets and the deferred tax liability related
to intangible assets from common shareholders' equity (GAAP). The denominator
for tangible book value per share (non-GAAP), tangible assets (non-GAAP), is
calculated by excluding intangible assets and the deferred tax liability related
to intangible assets from total assets (non-GAAP).
Tangible common shareholders’ equity ratios have become a focus of some
investors and management believes they may assist investors in analyzing the
capital position of the company absent the effects of intangible assets and
preferred stock. Analysts and banking regulators have assessed Regions’ capital
adequacy using the tangible common shareholders’ equity measure. Because
tangible common shareholders’ equity is not formally defined by GAAP or
prescribed in any amount by federal banking regulations it is currently
considered to be a non-GAAP financial measure and other entities may calculate
it differently than Regions’ disclosed calculations. Since analysts and banking
regulators may assess Regions’ capital adequacy using tangible common
shareholders’ equity to tangible assets, management believes that it is useful
to provide investors the ability to assess Regions’ capital adequacy on this
same basis.
Non-GAAP financial measures have inherent limitations, are not required to be
uniformly applied and are not audited. Although these non-GAAP financial
measures are frequently used by stakeholders in the evaluation of a company,
they have limitations as analytical tools, and should not be considered in
isolation, or as a substitute for analyses of results as reported under GAAP. In
particular, a measure of earnings that excludes selected items does not
represent the amount that effectively accrues directly to stockholders.
Additionally, our non-GAAP financial measures may not be comparable to similar
non-GAAP financial measures used by other companies and there is no certainty
that we will not incur expenses in the future that are similar to those excluded
in the calculations of non-GAAP financial measures presented herein.
Management and the Board of Directors utilize non-GAAP measures as follows:
• Preparation of Regions' operating budgets
• Monthly financial performance reporting
• Monthly close-out reporting of consolidated results (management only)
• Presentation to investors of company performance
• Metrics for incentive compensation
See the company's Financial Supplement, included as Exhibit 99.2 to the
company's Current Report on Form 8-K furnished to the SEC on Oct. 16, 2026, for
reconciliations of and additional information regarding the company's non-GAAP
financial measures.
9